Which One of the Following Statements Is Correct

question 22

Multiple Choice

Which one of the following statements is correct?

• A)If an acquisition is made with cash then the cost of that acquisition is dependent upon the
• Acquisition gains.
• B)Acquisitions made by exchanging shares of equity are normally taxable transactions.
• C)The management of an acquiring firm may put itself at risk of losing control of the firm if
• They make acquisitions using shares of equity.
• D)The equityholders of the acquiring firm will be better off when an acquisition results in
• Losses if the acquisition was made with cash rather than with equity.
• E)Acquisitions based on legitimate business purposes are not taxable transactions
• Regardless of the means of financing used.

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Definitions:

Kinsey's Rating Scale

A scale measuring sexual orientation developed by Alfred Kinsey, ranging from 0 (exclusively heterosexual) to 6 (exclusively homosexual).

Homosexual

Pertaining to a sexual orientation characterized by attraction to individuals of the same sex.

Heterosexual

A sexual orientation where individuals are romantically or sexually attracted to people of the opposite gender.

Human Sexual Response

The sequence of psychological and physiological changes that occur in the body as a result of sexual stimulation, typically including phases such as arousal, plateau, orgasm, and resolution.